Category: Budgeting

Finances can be a worry for many people and it can for some, be a constant worry throughout their lives. The same was true for myself for a very long time but my thinking changed when I did a course which included an aspect of positive thinking. It was explained that however much money we all have, we still have thigs to pay out and as income increases so do expenses and therefore having more money does not solve your financial problems. It took a long while and a lot of learning about money to finally realise why this was correct.

Making your finances balance

It is key to make sure that your finances always balance. This means that you always spend less or the same as you earn. This is not always easy, but if you are aware of how much you earn and how much your bills are, then you will be well o the way to doing well with this. You will need to think about how much you always earn and whether you are likely to have any occasions when your earning might go down that you might need to prepare for. You also need to be aware of what you normally spend and when you might find a time when you might need to spend more money. Then you are in a position to be in control of your finances.

It can be important to keep checking the balance on your current account so that you are aware of how much money you have available to spend. It can be easier to set up your direct debits so that all of your bills are paid just after you get paid and then you will know how much money you have left to last you until you next get paid.

Getting into good spending habits

It is wise to make sure that you spend wisely all of the time. This means that you think hard about everything that you buy and make sure that it is something that you really need or want. You should also think about whether you can find any items that you are going to buy cheaper. You should be comparing prices all of the time and think about which items you think will be providing you with the best value for money. This can seem rather tiresome, but you will get used to it and once it is a habit it will be very easy to do. This does not mean that you have to suffer and go without things, but if you can pay less for the things that you do buy and only buy things that you really enjoy then you will save money. You will also appreciate the things that you buy more because you will buy things less often and therefore will find having new things more of a novelty. If you wait to buy something, perhaps because you need to save up or think about whether you really want it, you can actually find that you really enjoy it a lot more because you have had to wait.

Keeping some savings behind you

It is a really good idea to have some savings all of the time. If you have some money put aside then you will have some if you need it in an emergency. This means that if you get an unexpected bill, need to replace something that is broken or find that your income is reduced for some reason, you will have some money to help you. The more money you have managed to build up the more confident you can feel in your ability to cope if you are in a situation where money is a problem for you. If you can manage to put some money into a savings account every month, then this will build up for you. The best thing to do is to put some in just after you get paid. This will then help you to be able to budget for the rest of the month with the money that you have left. If you wait until the end of the month, which many people do, you could find that there is nothing left to save. However, if you do have money left at the end of the month, then put this into the savings account as well.

Staying away from bad debt

It is very wise to learn to stay away from bad debt. This is when you borrow money for things which are not necessary or when you borrow money without finding the cheapest or best type of loan for your needs. This can lead to more debt than necessary and can lead to all sorts of problems with regards to your finances as well as your stress levels. If you do not make sure that you can manage the repayments then you could really struggle with being able to afford everything that you need as well as causing yourself a lot of worry.